Managed High Yield Plus Fund Inc.— Dividend Declaration, Fund Commentary, and Updated Price and Yield Information

Business Wire, August 10, 2009

NEW YORK -- Managed High Yield Plus Fund Inc. (the "Fund") (NYSE: HYF), a closed-end management investment company, today announced that the Fund’s Board of Directors has declared a dividend from net investment income of $0.0180 per share. The dividend is payable on August 31, 2009 to shareholders of record as of August 20, 2009. The ex-dividend date is August 18, 2009. Managed High Yield Plus Fund Inc. seeks high income and, secondarily, capital appreciation, primarily through investments in lower-rated, income producing debt and related equity securities.

Fund Commentary for the month of July 2009 from UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s investment advisor:

The market for US dollar-denominated high yield securities had a strong showing with a return of 5.93% during the month, as measured by the Merrill Lynch US High Yield Cash Pay Constrained Index, the “Index.” The Index ended the month with a spread over Treasury securities of 912 basis points (i.e., 9.12%), which represented a tightening of 122 basis points (i.e., 1.22 %) for the month. (Spread is the difference between the yield paid on US Treasury bonds and higher-risk securities.)

As in the past few months, distressed and CCC-rated issues outperformed, gaining 8.4 % and 10.41% for the month as investors’ risk appetite returned with moderately positive results. B and BB-rated issues underperformed with returns of 4.5 % and 4.6%, respectively, as measured by the Index. The automotive and auto part sectors saw the largest gains, given the increasingly positive tone of volume growth due to the US government's "cash for clunkers" program.

In July, the Fund outperformed the Index due mainly to security selection and its use of leverage. The Fund’s industry overweights to the healthcare, electric and telecommunications sectors benefited performance. In addition, the Fund was underweight several industries which underperformed, including cable television, air transportation, and banks.

We recognize that there has been recent spread tightening, and we understand that it may continue in the short-term if high yield credit remains a more preferred asset class. However, we believe the trend in high yield spreads could reverse if the market refocuses on what remains a challenging economic environment for many high yield companies. In our view, considerable default risk remains, and if consensus default rates materialize, high yield returns could be negatively impacted.

Disclaimers Regarding Fund Commentary - The Fund Commentary is intended to assist shareholders in understanding how the Fund performed during the month noted. Views and opinions were current as of the date of this press release. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the Fund and UBS Global AM reserve the right to change views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent.

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